The Forex Market Insight Report shows charts on different major currencies and commodities, with brief commentaries on how new data releases and news cause movements in the market.

Headline:

  • Risk cautiously higher overnight despite S&P downgrade of EFSF
  • Euro flat overnight as S&P downgrade weighs on Franco-German solution hopes
  • Aussie strengthens after RBA cut in sign of improved sentiment
  • Oil, gold both higher wit gold finding strong support at 1700
  • US sharemarkets finished around 0.4% higher for second consecutive winning day
  • Today’s focus on Australian GDP at 11.30 with RBNZ rate decision tomorrow morning

AUD/USD
The Aussie saw a short-term move lower on the back of yesterday’s rate cut but we saw the Aussie well supported on any dip and this causes us to be more bullish. Traders will be looking for an intra-day pullback to 1.0230 or waiting for a break above 1.0335.

GOLD
Gold’s found strong support at 1700 and this solid bounce could see the market target back to 1760. On an intra-day basis, 1720 looks like dynamic support.

EUR/USD
The focus still remains to the downside on the Euro and traders will be looking for a push up to 1.3480 to look for multi-day
shorts. The near term road map will be focusing shorts ahead the potential ECB rate cut on Thursday night and then looking towards the event risk from Friday’s EU meeting, which could see a sharp move higher.

GBP/USD
Cable continues to be held hostage by the Euro’s weakness and the market will still be looking for shorts on this pair. A move up to 1.5640/60 is likely to be seen as a selling opportunity.

USD/JPY
The dollar-yen has pulled back to 77.70 and this looks to be the last line of support for the USD/JPY. We’ve seen a good move
higher in this pair but at some point the long-term downtrend should reassert itself. A break below 77.70 could trigger selling.

SILVER
Silver’s showing some signs of strength after the strong move higher in the last few hours. This reflects the move higher in gold during the same period. A break of 33.00 sets up a short term move to 30.70.

USD/CHF
The dollar-Swiss could be finding some resistance at the top of the range and the market will be looking for shorts up at these levels until we see a clear break above 0.9330.

GBP/JPY
The sterling-yen looks to be heading lower and a break below 121.00 could see a continuation of the downtrend.

AUD/JPY
The Aussie-yen is forming a more bullish pattern at lower levels but traders will be focusing on shorts until we see a clear break above 80.20.

OIL
Oil continues to find good support around 100.00 and the consecutive higher peaks also looks bullish. A pullback towards 100 is likely to be seen as a chance for new longs with the expectation of a move back through and above 102.40.

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